My DH's credit card got blocked last week, as the bank thought it was being used fraudulently. I've jsut checked the statement, and there is a "paypal" entry linked to our card - but the card is not registered to my paypal account, and we have not purchased anythign from the listed company.
Anyway, to cut a long, and probably boring story short - I've jsut spoken to Paypal, and they have said that if we ring them with the credit card details, adn transaction details they will investigate and if it is shown to be fraudulent, they will reimburse the money.
My point is - a; follow leads. and try and find out what has happened
and b; as my DH now knows.. never NEVER give your credit card details out OVER THE PHONE to an EBAY seller (OMG... how stupid was he?!!)